THE IMPACT OF SERVICE QUALITY TOWARD CUSTOMER SATISFACTION AND CUSTOMER LOYALTY: A CASE OF GRAB

Abstract

Purposes: This study aims at providing more understanding of the influences of service quality toward customer satisfaction and customer loyalty and the influence of mediating variable which is customer satisfaction between service quality and customer loyalty in online transportation industry. Design/Methodology/Approach: Quantitative method was being used in this research by distributing questionnaire via online using Google Form which consists of 30 item statements. The primary data was collected from 435 respondents and only 352 valid responses were being teted afterward. The data were tested for its validity and reliability. Structural Equation Modeling (SEM) was used to analyze the fitness of the proposed model and hypothesis testing to analyze the relation between variable. Findings: The research found that service quality has a significant impact on satisfaction and customer satisfaction as mediating variable between service quality and customer loyalty also have significant impact. Meanwhile, customer loyalty was not influenced by service quality significantly. Originality/Value: As far as the author knows, the research on determining service quality toward customer satisfaction and customer loyalty on overall services offered by the online transportation provider has not been done before.